I defaulted on my student loan. Can my social security benefits be garnished? [e-mail]?

Question

it's my understanding that benefits cannot be garnished as long as they are not Direct-deposited.

i know they can't touch my VA disability. Can they take my SS benefits. If the can? Do I have too file for SS?

Answer 1

If your federal student loan is in default, the federal government can offset your social security.  It's usually done as one of the last resorts, but it can happen.

From the U.S. Department of Education's "Collections Guide to Defaulted Student Loans" website:

http://www.ed.gov/offices/OSFAP/DCS/trea...

"Additionally, there are a number of other federal and/or state payments (e.g., Social Security benefits), which, as authorized by law, are also subject to offset under this program."

Answer 2

From my understanding, if you defaulted on a loan I don't think they take your benefits away.  You just get bad credit.  I know that a lot of doctors and lawyers default on their student loans.